1. PhD student, Faculty of Tourism and Hospitality Management, Opatija
DRIVERS OF INNOVATION IN SUSTAINABLE TOURISM DEVELOPMENT – THE CONEPT AND CASE OF ISTRIA DESTINATION
Robert Ribarić, M.Sc.
PhD student, Faculty of Tourism and Hospitality Management, Opatija

2. INTRODUCTION Sustainable tourism development requires:
ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
INTRODUCTION
Sustainable tourism development requires:
participation of all relevant stakeholders
strong political leadership to ensure wide participation and consesus
Stakeholders should:
promote sustainable, integrated and innovative tourism product
promote wellbeing of local community
reduce negative impact at tourism destinations
share and integrate diverse knowledge and skill required to create sustainable tourism product

3. RESEARCH PROBLEM, OBJECTIVES AND HYPOTHESES
ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
RESEARCH PROBLEM, OBJECTIVES AND HYPOTHESES
The purpose of this research:
empirically investigate the stakeholder’s attitudes based on proposed drivers of innovation in order to create integrated sustainable tourism product
to date, the research problem in terms of the level of innovativeness of integrated tourism product, observed by stakeholders in Istria destination, has not been systematically researched

4. RESEARCH PROBLEM, OBJECTIVES AND HYPOTHESES
ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
RESEARCH PROBLEM, OBJECTIVES AND HYPOTHESES
This research intented to:
define the basic stakeholders in Istria as tourist destination, in the context of integrated sustainable tourism product
enumerate potential drivers of innovation for integrated sustainable tourism product in Istria as tourist destination
evaluate the impact of potential drivers of innovation on sustainable tourism product of Istria destination, up to present, in order to create integrated sustainable tourism product in the future
assess the determinants of innovativeness of sustainable tourism product of Istria destination

5. RESEARCH PROBLEM, OBJECTIVES AND HYPOTHESES
ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
RESEARCH PROBLEM, OBJECTIVES AND HYPOTHESES
Research hypothesis:
innovation behavior of stakeholders based on proposed drivers of innovation is not unique and only partially contributes to the creation of an integrated and sustainable tourism product of Istria as tourist destination. The success of an integrated and sustainable tourism product of Istria destination depends on innovation networks and collaboration among stakeholders. From the stakeholders’ perspective, sustainable tourism product depends on the structure created by the latent variables as a result of factor analysis.

6. RESEARCH INSTRUMENT Questionnaire:
ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
RESEARCH INSTRUMENT
Questionnaire:
19 attributes relating to the impact of potential drivers of innovation on sustainable tourism product of Istria destination, up to present
21 attributes in order to measure the share of presented attributes as determinant of innovativeness of sustainable tourism product of Istria destination
respondents’ demographic information: gender, level of education, age and position of respondent
seven point Likert scale
the attributes structure were selected from studies conducted by research paper of Carlisle, Kunc, Jones and Triffin (2013), Grissemann, Pikkemaat and Weger (2013), Hjalager (2010), Hjalager and Flagestad (2012), Sundbo, Orfila-Sintes and Sorensen (2007)

7. SAMPLE total of 344 questionnaires were distributed to stakeholders
ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
SAMPLE
total of 344 questionnaires were distributed to stakeholders
data was collected during January and February 2015
a total of 116 questionnaires were returned
because of incompleteness, 2 questionnaires were eliminated and 114 useful questionnaires were obtained with yield of 33,13 % response rate

8. DATA ANALYSIS statistical software SPSS, Excel
ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
DATA ANALYSIS
statistical software SPSS, Excel
explorative factor analysis
internal consistency: Cronbach’s alha coefficient (higher than 0,6)
suitability of conducting factor analysis: Kaiser-Meyer-Olkin test, Bartlett’s test of sphericity
the criteria for the number of factors extracted were based on communalities (equal or greater than 0,50) eigenvalues (equal or greater than 1), percentage of variance (at least 60% of total variance explained) and significance of factor loading (above 0,40)

9. RESULTS OF THE RESEARCH
ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
RESULTS OF THE RESEARCH
DEMOGRAPHIC CHARACHERISTICS:
GENDER (N=114):
male ,26%
female 44,74%
LEVEL OF EDUCATION (N=114):
Secondary school ,39%
College, University 89,47%
MSc, PhD ,14%
AGE (N=114):
,63%
,19%
,39%
,79%

10. RESULTS OF THE RESEARCH
ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
RESULTS OF THE RESEARCH
SHAREHOLDERS (N=114):
Academic community (professor, researcher…) - (3,51%)
Architects - (2,63%)
Communal company managers - (1,75%)
Development managers – (0,88%)
Ecological project managers – (0,88%)
Hotel managers - (13,16%)
IT managers - (5,26%)
Local government (mayors, councilors…) - (20,18%)
Marketing, sales managers - (4,39%)
Museum managers, curators - (11,40%)
Natural heritage, national park or nature park managers - (2,63%)
Restaurant owner/managers - (8,77%)
Tourist board managers – (14,91%)
Travel agency managers – (9,65%)

11. ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
THE IMPACT OF POTENTIAL DRIVERS OF INNOVATION ON SUSTAINABLE TOURISM PRODUCT OF ISTRIA DESTINATION
No. of
attribute
Attributes
Factor loading F1
FACTOR 1: INFORMATION TECHNOLOGY
AND COOPERATION
PD/8
Business intelligence development
0,870
PD/7
Implementation of the latest IT applications during new tourist products and services developing
0,856
PD/12
DMO development
0,831
PD/9
Cooperation with collaborators to create new tourist products and services
0,827
PD/5
Positive attitude towards the use of IT
0,825
PD/11
Appreciation of the preliminary assessment of external partners for developing new tourist products and services
0,819
PD/10
Maintaining a close network with collaborators and competitors
0,793
PD/6
Role of IT in the development of new tourist product and services
0,655

12. ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
THE IMPACT OF POTENTIAL DRIVERS OF INNOVATION ON SUSTAINABLE TOURISM PRODUCT OF ISTRIA DESTINATION
No. of attribute
Attributes
Factor loading F2
FACTOR 2: MANAGERS AND
EMPLOYEE ENGAGEMENT
PD/4
Employees integration in the development of new tourist product and service offering
0,862
PD/2
Continuous professional development
0,847
PD/3
New ideas and positive attitude towards new tourist product and services
0,791
PD/1
Education and acquired knowledge
0,718

13. ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
THE IMPACT OF POTENTIAL DRIVERS OF INNOVATION ON SUSTAINABLE TOURISM PRODUCT OF ISTRIA DESTINATION
No. of attribute
Attributes
Factor loading F3
FACTOR 3: INNOVATION MANAGEMENT
PD/17
Managers involvement in all stages of the innovation process
0,917
PD/16
Promoting an innovative environment
0,878
PD/19
Informing employees about the current innovation process of new tourist products and services
0,868

14. ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
THE IMPACT OF POTENTIAL DRIVERS OF INNOVATION ON SUSTAINABLE TOURISM PRODUCT OF ISTRIA DESTINATION
No. of attribute
Attributes
Factor loading F4
FACTOR 4: CUSTOMER ENGAGEMENT
PD/14
Measurement of customer satisfaction in order to develop a new tourist products and services
0,883
PD/15
Customer relationship management (CRM) development
0,836
PD/13
Comprehension of customer demand and complaint in order to develop a new tourist product and services
0,797
PD/18
Managers creativity and willing to take a risk
0,515

15. Bartlett's test: χ2=3541,097 df=171 Sig.=0.000
ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
THE IMPACT OF POTENTIAL DRIVERS OF INNOVATION ON SUSTAINABLE TOURISM PRODUCT OF ISTRIA DESTINATION
Attributes
Factor loading F1 F2 F3 F4
Eigenvalue
10, , , ,133
Eigenvalue - total
16,096
% of Variance
54, , , ,962
Cumulative % of Variance
54, , , ,717
Cronbach alpha
0,962
0,954
0,991
0,804
Cronbach alpha – total
0,944
KMO = 0,815
Bartlett's test: χ2=3541, df=171 Sig.=0.000

16. ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
ASSESSING THE DETERMINANTS OF INNOVATIVENESS OF SUSTAINABLE TOURISM PRODUCT OF ISTRIA DESTINATION
No. of attribute
Attributes
Factor loading F1
FACTOR 1: ENVIRONMENTAL PLANNING
STP/14
Architecture blended in with landscape
0,934
STP/11
Golf course construction
0,906
STP/15
Light pollution
0,905
STP/12
Urban planning
0,898
STP/13
Regional development plans
0,773
STP/10
Landscape conservation
0,771

17. ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
ASSESSING THE DETERMINANTS OF INNOVATIVENESS OF SUSTAINABLE TOURISM PRODUCT OF ISTRIA DESTINATION
No. of attribute
Attributes
Factor loading F2
FACTOR 2: ENERGY MANAGEMENT
STP/1
Utilisation of renewable sources of energy
0,812
STP/5
Recycling possibilities or composting in the destination
0,810
STP/2
Regional public awareness campaigns and energy saving programs and measures
0,807
STP/3
Programs to encourage use of renewable energy
0,804
STP/4
Separation of different types of waste
0,750
STP/16
Information material from regional and local authorities
0,745

18. ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
ASSESSING THE DETERMINANTS OF INNOVATIVENESS OF SUSTAINABLE TOURISM PRODUCT OF ISTRIA DESTINATION
No. of attribute
Attributes
Factor loading F3
FACTOR 3: TRADITION VALUES, LOCAL COMUNITIES
STP/18
Traditional values and tolerance conservation
0,967
STP/21
Visit to local communities, cultural events
0,902
STP/20
Organic, traditional food and beverages, locally produced
0,889
STP/19
Regional product designed for tourists
0,885
STP/17
Bicycle and hiking trails
0,647

19. ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
ASSESSING THE DETERMINANTS OF INNOVATIVENESS OF SUSTAINABLE TOURISM PRODUCT OF ISTRIA DESTINATION
No. of attribute
Attributes
Factor loading F4
FACTOR 4: COASTAL PROTECTION
STP/6
Method of beach cleaning
0,897
STP/7
Collection of waste
0,882
STP/8
Protection of beach
0,869
STP/9
Integrated coastal zone management
0,768

20. Bartlett's test: χ2=3651,398 df=210 Sig.=0.000
ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
ASSESSING THE DETERMINANTS OF INNOVATIVENESS OF SUSTAINABLE TOURISM PRODUCT OF ISTRIA DESTINATION
Attributes
Factor loading F1 F2 F3 F4
Eigenvalue
8, , , ,248
Eigenvalue - total
17,673
% of Variance
40, , , ,941
Cumulative % of Variance
40, , , ,155
Cronbach alpha
0,956
0,951
0,943
0,924
Cronbach alpha – total
0,917
KMO = 0,695
Bartlett's test: χ2=3651, df=210 Sig.=0.000

21. LIMITATIONS sample size limited regional area
ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
LIMITATIONS
sample size
limited regional area
different demographic characheristic
this research cannont represent other regional tourist destinations
presented set of attributes can be complemented with other relevant items (e.g. continental area)
these limitations dont’t reduce the validity of reported result, they can be used to provide suggestions for future research

22. ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
FUTURE RESEARCH
future research might use more representative sample in different tourist destination in order to ensure more comprehensive results (local comunity, tourists...)
researchers, academic or practitioners, might be interested in testing the difference attitudes regarding the different demographic characteristic of stakeholders

23. ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
CONTRIBUTION
The study provides reliable and comprehensive information for:
PRACTITIONERS:
practitioners in tourist destination can more effectively deploy development concept in the direction of sustainable tourism product based on innovation drivers and innovation network
this study allows them to concentrate on those factors that have the greatest impact on sustainable tourism product in the future and to improve the others
ACADEMIC:
considering the lack of research in the field of innovation activities in tourist industry, particularly in destination management, this research may expand the knowledge in this context
the methodology could be applied in future scientific research

24. ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
CONCLUSION
14 main stakeholders in Istria as tourist destination are devided in four groups: private sector, government, institutions and academic community
these stakeholders are the basis of innovation network
the author proposed 19 potential drivers of innovation, the factor analysis revealed four dimensions of potential drivers of innovation with impact on sustainable tourism product of Istria destination: INFORMATION TECHNOLOGY, MANAGERS AND EMPLOYEE ENGAGEMENT, INNOVATION MANAGEMENT and CUSTOMER ENGAGEMENT
the author proposed 21 attributes representing determinants of innovativeness of sustainable tourism product, the factor analysis indicates that determination of innovativeness can be described with four dimensions: ENVIRONMENTAL PLANNING, ENERGY MANAGEMENT, TRADITION VALUE AND LOCAL COMUNTY and COASTAL PROTECTION

25. ToSEE - Tourism in South East Europe
3rd International Scientific Conference
Sustainable Tourism, Economic Development and Quality of Life
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija
CONCLUSION
the most important factors that influence the defining of goals and strategies within the concept of sustainable development in the future are defined as four main factors as result of factor analysis
tourism policy should involve managers in all stages of the innovation process, promote an innovative environment and inform employees on the lower organizational level about innovation processes of new tourism products and services

26. Thank you for your attention!
Robert Ribaric, M.Sc.
PhD student
University of Rijeka, Faculty of Tourism and Hospitality Management